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Market Updates

One… Two… Freddie (Mac) is Coming for You

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freddyThe Inspector General of the Federal Housing Finance Agency (FHFA) recently released a report detailing Freddie Mac’s failure to supervise its loan servicers for their professional and conscientious handling of consumer complaints.

Officially known as “escalated cases”, these varied complaints are accusations against the federal agency's services to borrows like you, generally concerning five separate categories of systematic failure:

  1. Failure to follow Freddie Mac servicing guidelines
  2. Allegations of fraudulent servicing practices
  3. Failure to properly evaluate a borrower for foreclosure alternatives
  4. Unfair denial of foreclosure alternatives
  5. Violations pertaining to policy timelines for evaluations and borrower response time

And who bears the penalty for Freddie Mac’s failure? The Inspector General summarized it beautifully in his report…

“Servicers’ failure to resolve quickly escalated cases can prevent foreclosure alternatives from being…


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